BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the India spices market size at USD 1,935.68 million in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the India spices market size to grow at a CAGR of 10.94% reaching a value of USD 3,608.78 million by 2029. The growth of the India spices market is attributed to the multidimensional cuisine with its stark regional diversity plays an important role in boosting demand for various spices. Additionally, the flourishing local spice production and the availability of spices in regional markets at competitive prices have contributed to the growth of the Indian spices market. Aside from that, India’s burgeoning HoReCa sector is boosting market growth. Furthermore, the increasing penetration of Western cooking trends is fueling demand for a wide range of novel spices.
Opportunity: Rapidly growing e-commerce market
E-commerce platforms provide a convenient way for consumers to buy spices from a variety of sellers. This growth is being driven by several factors, including the deepening penetration of the internet, the growing popularity of online shopping, and the increasing disposable income of consumers. Spices sellers can reach a wider audience through e-commerce platforms and can offer their products at competitive prices. They can also provide convenience to consumers by offering delivery services. Consumers in home-cooked cuisine are focusing on their convenience, budget, and taste. Customers can now buy packaged masala items online through marketplaces, such as Amazon and Flipkart. The move to an organized market is changing the dynamics of the masala market and is expected to continue during the forecast period.
India Spices Market – By Sector
Based on sector, India spices market is divided into organized and unorganized. The organized sector is expected to hold a substantial market share during the forecast period, as customers’ rising appreciation for unadulterated, hygienic, and original spices, as well as the convenience of utilizing blended spices, has fuelled demand for organized players. Because of shifting client tastes, creative branding, secure packing procedures, and planned diversifications, the organized spice business is poised to grow.
India Spices Market – By End Use
Based on end use, India spices market is split into retail and food service. The food service segment is the dominant end-use segment in the India spices market. It accounts for most of the market share, as spices are used in a variety of food preparations in restaurants, hotels, and other foodservice establishments. The retail segment is also growing rapidly. The growth of the retail segment is being driven by the increasing popularity of packaged spices and the growing availability of spices in supermarkets and other retail outlets.
Impact of COVID-19 on India Spices Market
The COVID-19 pandemic had a significant impact on various industries worldwide, including the spices market in India. The combination of supply chain disruptions, labor shortages, and changes in consumer demand led to price fluctuations in the spices market. Spice crops are losing flavour for a variety of reasons, including changing trade dynamics. Because of the pandemic’s uncertainty, bulk investors and stockists kept their supplies low. However, as the Covid-19 became more widespread, demand fell. Investors and financial players were absent from the market due to economic and commercial uncertainty. Because no bidder was willing to hold the shares, demand fell, and prices also declined.
The India spices market is fragmented, with numerous players serving the market. The key players dominating the India Spices market include Aachi Spices & Foods Pvt Ltd, Patanjali Ayurved Limited, Badshah Masala, MTR Foods Pvt Ltd, Eastern Condiments Private Limited, Mahashian Di Hatti Private Limited, Everest Food Products Pvt Ltd, Catch Foods, Rajesh Masala, Pushp Masale, Sakthi Masala Private Limited, ITC Limited (Sunrise Pure), Ushodaya Enterprises Pvt Ltd (Priya), Tata Consumer Products Limited, and Zoff Foods Private Limited. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisition to expand their customer reach and gain a competitive edge in the overall market.
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